"With $29.2 billion generated through the first half of the year, 2022 commercial gaming revenue is pacing 18 percent ahead of 2021—the industry’s current record year.  

"While we should celebrate another milestone for our industry, I know we are all eager to see how current economic conditions will impact us in the second half of the year. Our 16-month growth streak since March 2021 shows that we are well-positioned for the long term and for any headwinds in the short term.

"The AGA looks forward to continuing to advance our industry as the global gaming community convenes at G2E 2022 in Las Vegas from October 10-13. I look forward to seeing you there," said Bill Miller, President and CEO.

Revenue data reported by state regulators and compiled by the AGA shows that nationwide gaming industry win from traditional casino games, sports betting and iGaming surpassed $14.85 billion in Q2, a 9.1 percent jump year-over-year and 3.5 percent higher than the previous quarterly record (Q4 2021).

The industry continued to benefit from consumer demand for travel and entertainment as well as the slow return of business travel and conventions. Travel spending nationwide rose for three consecutive months in Q2 and set a new pandemic high of $105 billion in June, according to the U.S. Travel Association.

The second quarter begins a stretch of increasingly challenging year-over-year comparisons. Unsurprisingly, the growth rate softened throughout the spring, with year-over-year revenue growth slowing from 13.1 percent in April, to 10.7 percent in May and 3.4 percent in June. That these months still constituted three of the ten top grossing months in U.S. gaming history attests to the industry’s strength over the past year.

Second quarter revenue from traditional slot machines and table games generated $12.17 billion or 81.9 percent of total commercial gaming revenue. Sports betting grossed $1.46 billion (9.8% of total) and iGaming $1.21 billion (8.2%).

At the halfway point, 2022 remains on track to surpass 2021 as the highest-grossing year in gaming industry history. The $29.20 billion in revenue generated during the first six months puts 2022 18 percent ahead of last year. Of total revenue in H1, traditional casino games accounted for $23.67 billion while sports betting added $3.08 billion and iGaming grossed $2.42 billion.

Nine States Set Single-Quarter Records

Of the 31 commercial gaming jurisdictions in operation a year ago, 22 posted year-over-year revenue increases in the second quarter. Ten of the 22 states reported all-time quarterly records for total commercial gaming revenue: Arkansas ($152.0M), Illinois ($528.5M), Iowa ($483.6M), Maryland ($519.5M), Massachusetts ($383.3M), Nevada ($3.71B), New York ($1.02B), Oklahoma ($39.6M), Oregon ($11.4M) and Pennsylvania ($1.32B).

Through the first half of 2022, gaming revenue in 27 of 31 commercial jurisdictions is ahead of the same period in 2021. Three states are trailing slightly behind last year – Kansas (-1.3%), Mississippi (-3.7%) and South Dakota (-2.5%) – reflecting a faster-than-average return to normal operations in 2021 and tougher year-over-year comparisons. Additionally, the District of Columbia’s turbulent betting market is down 26.7 percent compared to the first half of 2021.

Traditional casino revenue is tracking ahead of 2021 in 21 of 25 states through the first half, while four states are trailing slightly: Kansas (-1.3%), Louisiana (-0.3%), Mississippi (-3.4%) and South Dakota (-2.8%).

Sports Betting Continues to Grow, Some Maturing Markets See Slowdown

The start of summer and a slower sports calendar brought with it the annual slowdown in sports betting activity.

Quarterly sports wagering revenue of $1.46 billion marked a 63.3 percent jump from Q2 2021, with $449.8 million, or nearly one-third, of the winning coming from sports betting markets that weren’t live one year ago. Excluding new markets, Q2 2022 saw sports betting revenue increase 13.0 percent year-over-year. Eleven of 20 commercial sports betting markets that were operational one year ago saw wagering revenue growth in the second quarter.

After six months of 2022, commercial sports betting remains on track for another record-setting year with revenue reaching $3.08 billion, up 66.1 percent from the same period last year. Same market revenue gained 14.4 percent compared to the first half of 2021.

iGaming's Q2 Ties First Quarter for Record

iGaming platforms in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia generated $1.21 billion in Q2, gaining 34.3 percent year-over-year and inching $3 million (0.2%) ahead of the previous record set in the first quarter of 2022. Six iGaming markets were live this quarter compared to five in 2021 (excluding Nevada online poker). Omitting the new iGaming market, Q2 iGaming revenue was up 27.2 percent year-over-year.

2022 has been iGaming’s fastest start to a year at $2.42 billion in revenue during the first half, up nearly 43.5 percent from the previous record set in 2021. Same market revenue gained 35.7 percent compared to H1 2021.